Sunshine Silver Mining & Refining Company 2026 Q2 Earnings Call

Please go ahead. Good morning, everyone, and thank you for joining the call of Sunshine Silver Mining & Refining.

Joining me on the call today are Heather White, our Chief Executive Officer, and Dr. Thomas Kaplan, Chairman of the Board. Before we begin, I would like to remind everyone that today's discussion may contain forward-looking statements regarding the company's plans, expectations, and future performance. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Please refer to the cautionary statements included in today's presentation and yesterday's press release, as well as the risk factors described in our filings with the SEC. We issued our second quarter 2026 financial and reporting results yesterday after market close. The earnings release and our quarterly report on Form 10-Q are available on our website and through the SEC's EDGAR database.

With that, I'll turn the call over to Heather.

Thank you, André, and welcome everyone to our first quarterly earnings conference call as publicly listed Sunshine Silver Mining & Refining. Beginning on slide 4, I'm excited to share the progress we are making at The Shine and the opportunity we see both within the existing Sunshine footprint and across our broader land position. As this is our first quarterly call, I'd like to begin by putting the progress we've made into context and address what differentiates Sunshine, why we believe this asset is so well positioned, and how the work underway today supports our path forward. That story begins with location. Turning to slide 5, Sunshine is located in Idaho's Silver Valley, the most prolific silver district in U.S. history, and a top 10 mining jurisdiction globally.

The region offers established infrastructure, access to skilled labor, and we have some of the best hands in the business, and strong community and government support for mining. Second, when it comes to asset quality, grade is king. As you can see on slide six, Sunshine sits well above the rest. The Sunshine Mine hosts North America's highest grade primary silver resource. It is home to 103.9 million ounces of indicated silver resource at 1,022 grams per ton, and 159.8 million ounces of inferred silver resources at 776 grams per ton. That is three times the average of other high-grade silver assets globally and two times higher than our Silver Valley neighbors.

As seen on slide seven, our total resource currently supports what is envisioned to be a generational 24-year mine life, and we are just getting started. Stellar drill results to date from our ongoing 50,000 meter drill program are expected to increase our confidence in those resources and have uncovered significant near mine potential. That all said, our current base case, which assumes approximately 1,000 tons per day throughput, delivers 6.7 million ounces of payable silver annually in the first five years, and 5.8 million ounces annually over the life of mine. This translates to The Shine being the second largest primary silver producer in the United States when it comes online. Turning to slide eight, Sunshine offers investors a compelling pure play silver opportunity with leverage to the silver price.

At today's silver price of approximately $60 per ounce, Sunshine has a net present value of $2.2 billion. This increases to $3.2 billion at $80 per ounce. This value doesn't include the benefit of byproduct credits nor the refining of critical minerals, of which there is plenty of potential value add. As I've said, grade is king, and as the highest grade pure play silver resource in North America, it is easy to drive significant leverage to silver price. As you can see on slide nine, Sunshine also benefits from existing infrastructure that has been maintained and modernized with over $200 million of investment since 2010. In today's dollars, we estimate replacement cost of this infrastructure to be approximately $600 million.

In addition to existing infrastructure, we have the major permits already in hand that are required to restart mining, milling, and refining operations at the Sunshine Complex. Together, these advantages provide a de-risked path toward our planned return to production in late 2028. That all said, the opportunity at Sunshine extends beyond the current mine. As shown on slide 10, our 50,000 meter infill drill program is currently underway. As we work on infill in support of the feasibility study, we are seeing near mine exploration potential as well. Our program has delivered remarkable results to date, especially in the upper country. In complement to other near mine areas, these results are reinforcing our conviction in potentially doubling mill throughput to 2,000 tons per day. I will share more about these results later in the presentation.

Moving now to slide 11, the map here shows our 9,561 hectare mineral rights position, where we see untapped district scale exploration potential. We are the largest mineral rights land holder in the Silver Valley, and we intend to explore it. This is exploration opportunity that is unseen in the 140 year history of Sunshine. Our land position creates the potential to expand our mineral resource base, and over time, develop additional mines across this district. As stated on slide 12, when we say the next Sunshine is at Sunshine, we mean it, and the completion of our IPO provides the financial foundation to begin translating that opportunity into execution. Turning to slide 13, our successful IPO this quarter was a transformational event for The Shine, American Silver production, and our shareholders. We successfully raised approximately $310 million through the offering and bolstered our shareholder register with top-tier institutional holders.

We now have the cash on hand to fully fund our key work streams over the next 12 months without requiring additional capital. Importantly, we introduced Sunshine to the public markets with the capital and visibility to now advance the highest grade undeveloped silver asset in North America. I say it was transformational for American Silver because when Sunshine comes online, it will be the second largest primary silver producer in the U.S. Silver's addition to the U.S. list of critical minerals formally recognized its importance to the American economy and national security, as well as the risks associated with potential supply chain disruption. Silver is essential across energy infrastructure, electronics, advanced technologies, aerospace, and defense, and yet the U.S. currently accounts for only approximately 4% of global mined silver production. Bringing Sunshine online would therefore do more than create value for our shareholders.

It would introduce a new large scale domestic source of a critical mineral at a time when the U.S. is prioritizing secure and resilient supply chains. That said, we are building more than just a silver mine. As shown on slide 14, we see the potential to build a vertically integrated U.S.-based mine to refinery platform that can help support domestic critical mineral supply chains. The first component is our existing permitted silver copper refinery, which has the nameplate capacity to produce 10 million ounces of silver annually. Restarting this refinery could allow us to produce COMEX deliverable silver on-site, creating a direct connection from silver mined at Sunshine to finished silver bars produced in the U.S. The second component is the permitted Sunshine antimony plant.

A new facility has the potential to produce up to 34.5 million pounds of finished antimony annually, which if achieved, could supply up to approximately 60%, excuse me, of U.S. annual demand. We are also evaluating the opportunity to toll process antimony bearing concentrates from third parties, creating yet another potential source of feedstock and revenue. These opportunities are grounded in the storied proven history and existing capabilities of the Sunshine complex. Separate feasibility studies evaluating the restart of the silver copper refinery and develop of the antimony plant are underway. We have also engaged a top tier management consulting firm to conduct a strategic assessment of both of these opportunities, and their findings will inform the respective feasibility studies.

Together, these assets give Sunshine the potential to become one of the few integrated silver and critical minerals platforms in the U.S., creating values for what we mine and can process and refine on-site. Turning to slide 15, we believe Sunshine is the right asset at the right time for American Silver. We have a high grade, long life resource in a premier U.S. jurisdiction, existing infrastructure and major permits already in hand, untapped near mine and district scale growth potential, and the opportunity to build an integrated U.S. silver and critical minerals platform. Those attributes define the opportunity. With the completion of our IPO, we now have the financial foundation to advance our current work programs with a clear focus on execution. André van Niekerk will now review our second quarter financial results and liquidity.